Cost-of-living crisis
Situation where prices of essentials rise faster than wages / From Wikipedia, the free encyclopedia
A cost-of-living crisis refers to a socioeconomic situation where nominal wages have stagnated while there is a sharp increase in the cost of basic goods, such as food, housing, and energy. As a result, living standards are squeezed to the point that people cannot afford the standard of living that they were previously accustomed to. The population becomes poorer than it used to be in real terms. This is in contrast to a situation in which wages are rising to meet the rate of inflation and workers' standard of living remains unchanged.[1]
As of 2023, there is a cost-of-living crisis in many countries around the world.[2] In February 2023, 3 out of 4 consumers globally were worried about the rising cost of everyday expenses.[3]